/rant on
I can't speak for other countries, so here's the view from where I sit, overseas:
There is an undercurrent I've sensed from Washington lately...Maybe it's just me?
"We owe $XXXXXX-bazillion 'USD' to other countries...so let's just devalue (via your preferred means - dollar printing, buying our own debt, both at the same time, etc.) our USD! w00t! Problem solved!" And...it's catching on - at least over here in Japan. (They've learned soooo many lessons from us!)
The Bank of Japan is busy doing...well, that. Just watch what happens anytime the USD/Yen rate gets down near 75.
So, it's not like the good ol' U-S-of-A is operating in a vacuum in this argument. Japan is devaluing the Yen, China is presumably (help, anyone more knowledgeable about China?) still screwing around with the value of the Renminbi, etc. (I'm waaay out of my depth to comment on Europe.) In any event - from what I can see...I believe it's called "Competitive devaluation"?
I don't think the U.S. should OWE any country anything that can't be settled at the end of the month. And it SHOULD be settled at the end of the month, every month. (This doesn't mean we shouldn't have allies. We just shouldn't owe a lot of money to...say...a large Communist country that has has an excellent chance of being this generation's "new USSR", and has a name ending in "-hina", for example.)
Looking at our average households, I don't see fiscal responsibility happening anytime soon...but it should be our goal. Stop owing other countries money. Because you know they're going to come knocking at the worst time.
(Full disclosure:
#1 - I wish the USD was tied to something...ANYTHING. Gold. Moon dust. Whatever. Something we just can't make up more of 'from thin air'. The idea that we can devalue or revalue <though that never happens, does it?> the USD invariably winds up as a punishment for fiscally conservative folks. You know...the kind who join the military, because they want a safe, stable country, and presumably a safe, stable currency. Nice to have people operate within their means, including the U.S. Govt.
#2 - I'm not implying I have all, most, or even some of the answers. This is just my two cents.
#3 - Damn, this Chu-Hi is good. Those who've been here, Korea, or China know what I'm talking about. )
/rant off